#THE INDIAN CARRIAGE OF GOODS BY SEA ACT, 1925 
_________ 

##ARRANGEMENT OF SECTIONS 
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SECTIONS 

1. Short title and extent. 
2. Application of Rules. 
3. Absolute warranty of sea worthiness not to be implied in contracts to which Rules apply. 
4. Statement as to application of Rules to be included in bills of lading. 
5. Modification of Article VI of Rules in relation to goods carried in sailing ships and by prescribed 
  routes. 
6. Modification of Rules 4 and 5 of Article III in relation to bulk cargoes. 
7. Saving and operation. 
SCHEDULE.



#THE INDIAN CARRIAGE OF GOODS BY SEA ACT, 1925 

##ACT No. 26 OF 1925

[21st September, 1925.] 

An Act to amend the law with respect to the carriage of goods by sea. 

  WHEREAS  at  the  International  Conference  on  Maritime  Law  held  at  Brussels  in  October,  1922, the 
delegates  at  the  Conference, ,  agreed  unanimously  to  recommend  their  respective  Governments  to 
adopt as the basis of a convention a draft convention for the unification of certain rules relating to bills of 
lading; 

  AND WHEREAS  at  a  meeting  held  at  Brussels in  October,  1923,  the  rules contained  in the  said draft 
convention were amended by the Committee appointed by the said Conference; 

  AND  WHEREAS  the  said  rules  were  amended  by  the  Protocol  signed  at  Brussels  on  23rd 
February,1968 and by the Protocol signed at Brussels on 21st December, 1979;

  AND WHEREAS it is expedient that the said rules as so amended and as set out with modifications in 
the  Schedule  should,  subject  to  the  provisions  of  this  Act,  have  the  force  of  law  with  a  view  to 
establishing  the  responsibilities,  liabilities,  rights  and  immunities  attaching  to  carriers  under  bills  of 
lading; it is hereby enacted as follows:—

1. **Short title and extent.**—(1)  This  Act  may  be  called  the  Indian  Carriage  of  Goods  by  Sea  Act, 1925. 

(2) It extends to the whole of India. 

2. **Application of Rules.**—Subject  to  the  provisions  of  this  Act,  the  rules  set  out  in  the  Schedule 
(hereinafter referred to as “the Rules”) shall have effect in relation to and in connection with the carriage 
of goods by sea in ships carrying goods from any port in India to any other port whether in or outside 
India. 

3. **Absolute warranty of sea worthiness not to be implied in contracts to which Rules apply.**—
There shall not be implied in any contract for the carriage of goods by sea to which the Rules apply any 
absolute undertaking by the carrier of the goods to provide a seaworthy ship. 

4. **Statement as to application of Rules to be included in bills of lading.**—Every bill of lading, or 
similar  document  of title,  issued in India which  contains  or  is  evidence of  any  contract to  which the 
Rules apply, shall contain an express statement that it is to have effect subject to the provisions of the said 
Rules as applied by this Act. 

5. **Modification  of  Article  VI  of  Rules  in  relation  to  goods  carried  in  sailing  ships  and  by 
prescribed routes.**—Article VI of the Rules shall, in relation to— 

  (a) the carriage of goods by sea in sailing ships carrying goods from any port in India to any 
other port whether in or outside India, and 

  (b) the carriage  of  goods  by  sea  in ships  carrying  goods  from  a  port  in India notified in this 
behalf  in  the  Official  Gazette  by  the  Central  Government  to  a  port  in  Ceylon  specified  in  the  said 
notification, 

have effect as though the said Article referred to goods of any class instead of to particular goods and as 
though the proviso to the second paragraph of the said Article were omitted. 

6. **Modification of Rules 4 and 5 of Article III in relation to bulk cargoes.**—Where  under  the 
custom of any trade the weight of any bulk cargo inserted in the bill of lading is a weight ascertained or 
acceptedby a third party other than the carrier or the shipper and the fact that the weight is so ascertained 
or accepted is stated in the bill of lading, then, notwithstanding anything in the Rules, the bill of lading 
shall not be deemed to be prima facie evidence against the carrier of the receipt of goods of the weight so 
inserted in the bill of lading, and the accuracy thereof at the time of shipment shall not be deemed to have 
been guaranteed by the shipper. 

7. **Saving and operation.**—(1) Nothing in this Act shall affect the operation of sections section 331 
and Part XA of the Merchant Shipping Act, 1958 (44 of 1958)j, or the operation of any other enactment 
for the time being in force limiting the liability of the owners of sea-going vessels. 

(2) The Rules shall not by virtue of  this Act apply to any contract for the carriage of goods by sea 
before such day, not being earlier than the first day of January, 1926, as the Central Government may, by 
notification in the Official Gazette, appoint, nor to any bill of lading or similar document of title issued, 
whether before or after such day as aforesaid, in pursuance of any such contract as aforesaid. 



#SCHEDULE 

##RULES RELATING TO BILLS OF LADING 

###ARTICLE I.—*Definitions.*

  In  these  Rules  the  following  expressions  have  the  meanings  hereby  assigned  to  them  respectively, 
that is to say— 

  (a) “Carrier”  includes  the  owner  or  the  charterer  who  enters  into  a  contract  of  carriage  with  a 
shipper: 

  (b) “Contract of carriage” applies only to contracts of carriage covered by a bill of lading or any 
similar document of title, in so far as such document relates to the carriage of goods by sea including 
any  bill  of  lading  or  any  similar  document  as  aforesaid  issued  under  or  pursuant  to  a  charterparty 
from  the  moment  at  which  such  bill  of  lading  or  similar  document  of  title  regulates  the  relations 
between a carrier and a holder of the same: 

  (c) “Goods”  includes  any  property  including  live  animals  as  well  as  containers,  pallets  or 
similar  articles  of  transport  or  packaging  supplied  by  the  consignor,  irrespective  of  whether  such 
property is to be or is carried on or under deck;

  (d) “Ship” means any vessels used for the carriage of goods by sea: 

  (e) “Carriage of goods” covers the period from the time when the goods are loaded on to the time 
when they are discharged from the ship. 

###ARTICLEII.—Risks. 

  Subject to the provisions of Article VI, under every contract of carriage of goods by sea the carrier, in 
relation to the loading, handling, stowage, carriage, custody, care, and discharge of such goods, shall be 
subject to the responsibilities and liabilities, and entitled to the rights and immunities hereinafter set forth. 

###ARTICLEIII.—Responsibilities and Liabilities. 

  1. The carrier shall be bound, before and at the beginning of the voyage, to exercise due diligence to 
— 

     (a) make the ship seaworthy: 

     (b) properly man, equip, and supply the ship: 

     (c) make the holds, refrigerating and cool chambers, and all other parts of the ship in which goods 
are carried, fit and safe for their reception, carriage and preservation. 

2. Subject to the provisions of Article IV, the carrier shall properly and carefully load, handle, stow, 
carry, keep, care for and discharge the goods carried. 

3. After receiving the goods into his charge, the carrier, or the master or agent of the carrier, shall, on 
demand of the shipper, issue to the shipper a bill of lading showing among other things— 

     (a) The  leading  marks  necessary  for  identification  of  the  goods  as  the  same  are  furnished  in 
writing by the shipper before the loading of such goods starts, provided such marks are stamped or 
otherwise  shown  clearly  upon  the  goods  if  uncovered,  or  on  the  cases  or  coverings  in  which  such 
goods are contained, in such a manner as should ordinarily remain legible until the end of the voyage: 

     (b) Either the  number  of  packages  or pieces,  or the  quantity,  or  weight,  as the  case  may  be,  as 
furnished in writing by the shipper: 

     (c) The apparent order and condition of the goods: 

  Provided that no carrier, master or agent of the carrier, shall be bound to state or show in the bill 
of lading any marks, number, quantity, or weight which he has reasonable ground for suspecting not 
accurately  to  represent  the  goods  actually  received,  or  which  he  has  had  no  reasonable  means  of 
checking. 

4. Such  a  bill  of  lading  shall  be  prima  facie  evidence  of  the  receipt  by  the  carrier  of  the  goods  as 
therein described in accordance with paragraph 3(a), (b) and (c). However, proof to the contrary shall 
not be admissible when the bill of lading has been transferred to a third party acting in good faith.

5. The shipper shall be deemed to have guaranteed to the carrier the accuracy at the time of shipment 
of  the  marks,  number,  quantity,  and  weight,  as  furnished  by  him,  and  the  shipper  shall  indemnify  the 
carrier against ail loss, damages, and expenses arising or resulting from inaccuracies in such particulars. 
The right of the carrier to such indemnity shall in no way limit his responsibility and liability under the 
contract of carriage to any person other than the shipper. 

6. Unless notice of loss or damage and the general nature of such loss or damage be given in writing 
to the carrier or his agent at the port of discharge before or at the time of the removal of the goods into the 
custody of the person entitled to delivery thereof under the contract of carriage, or if, the loss or damage 
be  not  apparent,  within  three  days,  such  removal  shall  be  primafacieevidence  of  the  delivery  by  the 
carrier of the goods as described in the bill of lading. 

  The notice in writing need not be given if the state of the goods has at the time of their receipt been 
the subject of joint survey or inspection. 

  In any event the carrier and the ship shall be discharged from all liability in respect of loss or damage 
unless suit is brought within one year after delivery of the goods or the date when the goods should have 
been delivered. 

  This period may, however, be extended if the parties so agree after the cause of action has arisen; 

  Provided that a suit may be brought after the expiry of the period of one year referred to in this sub-
paragraph within a further period of not more than three months as allowed by the court.

  In  the  case of any  actual or  apprehended  loss  or  damage,  the carrier and the receiver  shall  give  all 
reasonable facilities to each other for inspecting and tallying the goods. 

7. After  the  goods  are  loaded  the  bill  of  lading  to  be  issued  by  the  carrier,  master  or  agent  of  the 
carrier, to the shipper shall, if the shipper so demands, be a “shipped” bill of lading, provided that, if the 
shipper shall have previously taken up any document of title to such goods, he shall surrender the same as 
against the issue of the  “shipped” bill of lading, but at the option of the carrier, such document of title 
may be noted at the port of shipment by the carrier, master, or agent with the name or names of the ship 
or ships upon which the goods have been shipped and the date or dates of shipment, and when so noted 
the same shall for the purpose of this Article be deemed to constitute a “shipped” bill of lading. 

8. Any clause, covenant or agreement in a contract of carriage relieving the carrier or the ship from 
liability for loss or damage to or in connection with goods arising from negligence, fault or failure in the 
duties  and  obligations  provided  in  this  Article  or  lessening  such liability  otherwise  than  as  provided in 
these Rules, shall be null and void and of no effect. 

  A benefit  of  insurance  or  similar  clause  shall  be  deemed  to  be  a  clause  relieving  the  carrier  from 
liability. 

###ARTICLE IV.—Rights and Immunities. 

1. Neither  the  carrier  nor  the  ship  shall  be  liable  for  loss  or  damage  arising  or  resulting  from 
unseaworthiness  unless  caused  by  want  of  due  diligence  on  the  part  of  the  carrier  to  make  the  ship 
seaworthy, and to secure that the ship is properly manned, equipped and supplied, and to make the holds, 
refrigerating and cool chambers and all other parts of the ship in which goods are carried fit and safe for 
their reception, carriage and preservation in accordance with the provisions of paragraph 1 of Article III. 

  Whenever loss or damage has resulted from unseaworthiness, the burden of proving the exercise of 
due diligence shall be on the carrier or other person claiming exemption under this section. 

2. Neither the carrier nor the ship shall be responsible for loss or damage arising or resulting from— 

  (a) act,  neglect,  or  default  of  the  master,  mariner,  pilot,  or  the  servants  of  the  carrier  in  the 
navigation or in the management of the ship: 

  (b) fire, unless caused by the actual fault or privity of the carrier: 

  (c) perils, dangers and accidents of the sea or other navigable waters: 

  (d) act of God: 

  (e) act of war: 

  (f) act of public enemies: 

  (g)arrest or restraint of princes, rulers or people, or seizure under legal process: 

  (h) quarantine restriction: 

  (i) act or omission of the shipper or owner of the goods, his agent, or representative: 

  (j) strikes or lock-outs or stoppage or restraint of labour from whatever cause, whether partial or 
general: 

  (k) riots and civil commotions: 

  (l) saving or attempting to save life or property at sea: 

  (m) wastage in bulk or weight or any other loss or damage arising from inherent defect, quality, 
or vice of the goods: 

  (n) insufficiency of packing: 

  (o) insufficiency or inadequacy of marks: 

  (p) latent defects not discoverable by due diligence: 

  (q) any other cause arising without the actual fault or privity of the cagier, or without the fault or 
neglect of the agents or servants of the carrier, but the burden of proof shall be on the person claiming 
the benefit of this exception to show that neither the actual fault or privity of the carrier nor the fault 
or neglect of the agents or servants of the carrier contributed to the loss or damage. 

3. The shipper shall not be responsible for loss or damage sustained by the carrier or the ship arising 
or resulting from any cause without the act, fault or neglect of the shipper, his agents, or his servants. 

4. Any deviation in saving or attempting to save life or property at sea, or any reasonable deviation 
shall not be deemed to be an infringement or breach of these Rules or of the contract of carriage, and the 
carrier shall not be liable for any loss or damage resulting therefrom. 

5. Neither the carrier nor the ship shall in any event be or become liable for any loss or damage to or 
in connection with goods in an amount exceeding 666.67 Special Drawing Rights per package or unit or 
two  Special  Drawing  Rights  per  kilogram  of  gross  weight  of  the  goods  lost  or  damaged,  whichever  is 
higher or the equivalent of that sum in other currency, unless the nature and value of such goods have 
been declared by the shipper before shipment and inserted in the bill of lading. 

  This declaration  if  embodied  in  the  bill  of  lading  shall  be  prima  fade  evidence,  but  shall  not  be 
binding or conclusive on the carrier. 

  Where a container, pallet or similar article of transport is used to consolidate goods, the number of 
packages  or  units  enumerated  in  the  bill  of  lading  and  as  packed  in  such  article  of  transport  shall  be 
deemed to be the number of packages or units for the purposes of this paragraph as far as these packages 
or units are concerned. 

  Neither the carrier nor the ship shall be entitled to the benefit of limitation of liability provided for in 
this paragraph if it is proved that the damage resulted from an act or omission of the carrier done with 
intent to cause damage, or recklessly and with knowledge that damage would probably result. 

  Where the nature or value of the goods has been knowingly mis-stated by the shipper in the bill of 
lading, the liability of the carrier or ship shall not exceed the value so stated.

  By agreement between the carrier, master or agent of the carrier and the shipper another maximum 
amount than that mentioned in this paragraph may be fixed, provided that such maximum shall not be less 
than the figure above named. 

  Neither  the  carrier  nor  the  ship  shall  be  responsible  in  any  event  for  loss  or  damage  to  or  in 
connection with goods if the nature or value thereof has been knowingly mis-stated by the shipper in the 
bill of lading. 

6. Goods  of  an  inflammable,  explosive  or  dangerous  nature  to  the  shipment  whereof  the  carrier, 
master or agent of the carrier, has not consented, with knowledge of their nature and character, may at any 
time before discharge be landed at any place or destroyed or rendered innocuous by the carrier without 
compensation,  and  the  shipper  of  such  goods  shall  be  liable  for  all  damages  and  expenses  directly  or 
indirectly arising out of or resulting from such shipment. 

  If any  such  goods  shipped  with  such  knowledge  and  consent  shall  become  a  danger  to  the  ship  or 
cargo, they may in like manner be landed at any place or destroyed or rendered innocuous by the carrier 
without liability on the part of the carrier except to general average, if any. 

###ARTICLE V.—Surrender of Rights and Immunities, and Increase of Responsibilities and Liabilities. 

  A carrier shall be at liberty to surrender in whole or in part all or any of his rights and immunities or 
to increase any of his responsibilities and liabilities under the Rules contained in any of these Articles, 
provided such surrender or increase shall be embodied in the bill of lading issued to the shipper. 

  The provisions of these Rules shall not be applicable to charterparties, but if bills of lading are issued 
in  the  case  of  a  ship  under  a  charterparty  they  shall  comply  with  the  terms  of  these  Rules.  Nothing  in 
these  Rules  shall  be  held  to  prevent  the  insertion  in  a  bill  of  lading  of  any  lawful  provision  regarding 
general average. 

###ARTICLE VI.—Special Conditions. 

  Notwithstanding the provisions of the preceding Articles, a carrier, master or agent of the carrier, and 
a shipper shall in regard to any particular goods be at liberty to enter into any agreement in any terms to 
the responsibility  and  liability  of  the  carrier  for  such goods,  and  as  to the rights  and  immunities of the 
carrier  in  respect  of  such  goods,  or  his  obligation  as  to  seaworthiness,  so  far  as  this  stipulation  is  not 
contrary  to  public  policy,  or  the  care  or  diligence  of  his  servants  or  agents  in  regard  to  the  loading, 
handling, stowage, carriage, custody, care, and discharge of the goods carried by sea, provided that in this 
case no bill of lading has been or shall be issued and that the terms agreed shall be embodied in a receipt 
which shall be a non-negotiable document and shall be marked as such. 

  Any agreement so entered into shall have full legal effect: 

  Provided  that  this  Article  shall  not  apply  to  ordinary  commercial  shipments  made  in  the  ordinary 
course of trade, but only to other shipments where the charter or condition of the property to be carried or 
the  circumstances,  terms  and  conditions  under  which  the  carriage  is  to  be  performed,  are  such  as 
reasonably to justify a special agreement. 

###ARTICLE VII.—Limitations on the Application of the Rules. 

  Nothing  herein  contained  shall  prevent  a  carrier  or  a  shipper  from  entering  into  any  agreement, 
stipulation, condition, reservation or exemption as to the responsibility and liability of the carrier or the 
ship for the loss or damage to or in connection with the custody and care and handling of goods prior to 
the loading on and subsequent to the discharge from the ship on which the goods are carriedby sea. 

###ARTICLE VIII.—Limitation of liability. 

  The provisions  of  these  Rules  shall  not  affect  the  rights  and  obligations  of  the  carrier  under  any 
Statute for the time being in force relating to the limitation of the liability of owners of sea-goingvessels. 

###ARTICLE IX

The monetary units mentioned in these Rules are to be taken to be gold value. 